College of Businesshttp://hdl.handle.net/1957/81482015-07-19T11:55:26Z2015-07-19T11:55:26ZThe effect of ownership structure on the price earnings ratio — returns anomalyHoumes, RobertChira, Ingahttp://hdl.handle.net/1957/562732015-06-26T21:35:58Z2015-01-01T00:00:00ZThe effect of ownership structure on the price earnings ratio — returns anomaly
Houmes, Robert; Chira, Inga
It is well known that firms with low price to earnings ratios (value firms) earn higher stock
returns in the long term than high price to earnings firms (growth firms). This study investigates
how insider ownership affects this relation. We show that when insider ownership is high, returns
decline for low P/E firms and improve for high P/E firms. These findings are rationalized in the
context of entrenchment and alignment of incentive effects. For low P/E firms, low stock returns
reflect the inability of boards of directors and outside shareholders to influence poorly
performing entrenched management. For high P/E firms, boards of directors and outside
shareholders are less likely to intervene since higher returns reflect increased agency incentives
for value-creating managers.
This is an author's peer-reviewed final manuscript, as accepted by the publisher. The published article is copyrighted by Elsevier and can be found at: http://www.journals.elsevier.com/international-review-of-financial-analysis/
2015-01-01T00:00:00ZA (Blurry) Vision of the Future: How Leader Rhetoric about Ultimate Goals Influences PerformanceCarton, Andrew M.Murphy, ChadClark, Jonathan R.http://hdl.handle.net/1957/558092015-05-15T19:18:59Z2014-12-01T00:00:00ZA (Blurry) Vision of the Future: How Leader Rhetoric about Ultimate Goals Influences Performance
Carton, Andrew M.; Murphy, Chad; Clark, Jonathan R.
One key responsibility of leaders involves crafting and communicating two types of messages—visions and values—that help followers understand the ultimate purpose of their work. Although scholars have long considered how leaders communicate visions and values to establish a sense of purpose, they have overlooked how these messages can be used to establish a shared sense of purpose, which is achieved when multiple employees possess the same understanding of the purpose of work. In this research, we move beyond the traditional focus on leader rhetoric and individual cognition to examine leader rhetoric and shared cognition. We suggest that a specific combination of messages—a large amount of vision imagery combined with a small number of values—will boost performance more than other combinations because it triggers a shared sense of the organization’s ultimate goal, and, in turn, enhances coordination. We found support for our predictions in an archival study of 151 hospitals and an experiment with 62 groups of full-time employees. In light of these findings, we conducted exploratory analyses and discovered two dysfunctional practices: leaders tend to (1) communicate visions without imagery and (2) over-utilize value-laden rhetoric.
This is an author's peer-reviewed final manuscript, as accepted by the publisher. The published article is copyrighted by the Academy of Management and can be found at: http://aom.org/amj/
2014-12-01T00:00:00ZInnovation: Integration of Random Variation and Creative SynthesisChen, JiyaoAdamson, Christopherhttp://hdl.handle.net/1957/556152015-04-16T00:32:47Z2015-01-01T00:00:00ZInnovation: Integration of Random Variation and Creative Synthesis
Chen, Jiyao; Adamson, Christopher
Sarah Harvey has developed an important model called creative synthesis for the use of
dialectical reasoning in creative endeavors. This model is put in direct opposition to the
evolutionary model called random variation, which, according to Harvey, promotes incremental
innovation, while creative synthesis promotes radical innovation. In emphasizing the affirmative
stage of the dialectical process, creative synthesis offers a description of how groups can be
consistently successful in creative endeavors through collective attention, enabling ideas, and
building on similarities. We propose that creative synthesis is not a rival to but an extension of
random variation and that the same dialectical reasoning used by Harvey allows us to integrate
the two models into a more versatile hybrid: evolutionary synthesis. We contend that the hybrid
model better reflects the complexity of reality and avoids the problem of routinization. It appears
that innovation is all about Darwin and Marx.
This is an author's peer-reviewed final manuscript, as accepted by the publisher. The published article is copyrighted by the Academy of Management and can be found at: http://amr.aom.org/content/current
2015-01-01T00:00:00ZInnovation Performance in New Product Development Teams in China's Technology Ventures: The Role of Behavioral Integration Dimensions and Collective EfficacyLiu, JingjiangChen, JiyaoTao, Yihttp://hdl.handle.net/1957/556142015-04-15T23:49:14Z2015-01-01T00:00:00ZInnovation Performance in New Product Development Teams in China's Technology Ventures: The Role of Behavioral Integration Dimensions and Collective Efficacy
Liu, Jingjiang; Chen, Jiyao; Tao, Yi
In emerging markets, technology ventures increasingly rely on new product development (NPD) teams to generate creative ideas, and to mold these innovative ideas into streams of new products or services. However, little is known about how behavioral integration (a behavioral team process) and collective efficacy (a motivational team process) jointly facilitate or inhibit team innovation performance in emerging markets—especially in China, the world’s largest emerging-market setting with collectivist and high power-distance cultures. Drawing on social cognitive theory and behavioral integration research, this article elucidates the relationships between behavioral integration dimensions (i.e., collaborative behavior, information exchange, and joint decision making) and innovation performance, and also examines how collective efficacy moderates these relationships in China’s NPD teams.
Results from a sample of 96 NPD teams in China’s technology ventures reveal that information exchange is positively associated with innovation performance. Collaborative behavior positively but marginally influences innovation performance, whereas joint decision making doesn’t relate to innovation performance. Moreover, collective efficacy demonstrates an important moderating role. Specifically, both collaborative behavior and joint decision making are more positively associated with innovation performance when collective efficacy is higher. In contrast, information exchange is less positively associated with innovation performance when collective efficacy is higher.
This study makes important theoretical contributions to the literature on team innovation and behavioral integration in emerging markets by offering a better understanding of how behavioral and motivational team processes jointly shape innovation performance in China’s NPD teams. This study also extends social cognitive theory by identifying collective efficacy as a boundary condition for the overall effectiveness of behavioral integration dimensions. In particular, this study highlights the condition under which behavioral integration dimensions facilitate or inhibit NPD team innovation performance in China.
This is an author's peer-reviewed final manuscript, as accepted by the publisher. The published article is copyrighted by the Product Development & Management Association and published by John Wiley & Sons, Inc. It can be found at: http://onlinelibrary.wiley.com/journal/10.1111/%28ISSN%291540-5885
2015-01-01T00:00:00Z